Question

£25 per month is invesed in a fund for a year and attract intrest of 10.5% compounded monthly. How much is the fund worth at the end of the year

Answer 1

P = Po(1+r)^n.

Po = 25 * 12 = $300.
r = 0.105/12 = 0.00875/mo.
n = 1Comp/mo. * 12mo. = 12 Compounding periods.
P = ?.